Aerospace, banking gains push mainland stock markets higher

Stock markets in the Chinese mainland rallied on Monday with a jump in the aerospace sector and a mild increase in the banking industry.

The Shanghai Composite Index rose by 0.59 percent or 11.92 points to 2,048.33 points on Monday, while the Shenzhen Component Index increased by 0.42 percent or 30.65 points to 7,343.28 points.

The combined turnover on the two bourses on Monday was 205.2 billion yuan ($32.99 billion), up from Friday's 197.9 billion yuan.

The gain was led by a 6.29 percent surge in the aerospace sector, as investors anticipate the Chinese government to spend more on defense-related companies amid rising tensions with the neighboring nations, analysts said.

Within the aerospace sector, Shanghai-listed North Electro-Optic Co soared by the daily limit of 10 percent on Monday. Its shares had gained more than 15 percent since the previous Monday, June 23.

Shanghai-listed China Aerospace Times Electronics Co gained 9.98 percent, and Aerospace Communications Holding Co jumped by 8.17 percent.

Banking stocks gained 0.5 percent on news released in the morning, which said that the China Banking Regulatory Commission would announce adjustments in Chinese banks' loan-to-deposit ratio.

Shanghai Lianming Machinery surged by 44 percent on debut Monday, the maximum increase allowed for the first day of trading. Three other companies that debuted on Thursday in Shenzhen rose 10 percent, after gaining 10 percent on Friday and 44 percent on Thursday.

The A shares of China Unicom tumbled by 2.13 percent while its Hong Kong shares increased by 0.84 percent, and China Telecom Corp gained 1.61 percent on Monday, following gains on Friday.

ChiNext, China's NASDAQ-style board for high-tech and start-ups listed in Shenzhen, rose by 1.14 percent or 15.9 points to 1,404.71 points Monday, the third growth in a row.